Wholesale survey results released

Results of the NAPSLO wholesale image survey of retailers showed a positive view of wholesalers by retailers, however retailers noted concerns on responsivess.

The report, produced by McKnight Kurland Baccelli is available to download from the website.

Based on the results, the NAPSLO Board is reviewing a recommendation by MKB to implement a marketing, advertising campaign over the next 18 months. 

The survey’s main conclusions:

   1. A large majority of retail brokers view specialty insurance wholesalers positively and expect to work with them in 2008.

   2. Retailer brokers indicate they value wholesalers most highly for their access to insurance carriers and specialty insurance coverage, and for their experience, expertise and knowledge.

   3. Retail brokers rate specialty insurance wholesalers most poorly for their lack of responsiveness. They also express frustration with a perceived lack of reasonable pricing/commissions and an inability to deliver quality outcomes for their clients.

   4. Retailer brokers report significant differences in professionalism across the specialty insurance wholesaler community, drawing a sharp distinction between “good” wholesalers and “bad” wholesalers.

MKB said these conclusions suggest that retail brokers’ perceptions of wholesalers are not as bad as assumed. However, they do confirm: 1) a lack of awareness of the value wholesalers bring to retail brokers and their clients, and 2) dissatisfaction with issues of pricing and professionalism (including responsiveness). The research made clear that most retail broker’s value the experience, expertise and knowledge wholesalers possess. Furthermore, retail brokers want to build relationships with wholesalers who offer high levels of professionalism, integrity and responsiveness.

MKB has recommended a campaign to promote the positive attitudes retail brokers have about wholesalers to the commercial insurance marketplace using integrated marketing and communications strategies. 

The report’s recommendations were threefold: 1) Do research on risk managers/sophisticated insurance buyers perceptions of wholesale brokers; 2) Launch a public relations marketing campaign focused on the value wholesalers provide; and 3) Address the responsiveness issue.